Amazon Extends Partnership with Grubhub, Offers Integrated Ordering for Prime Members

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Amazon.com has announced that its customers in the U.S. can now directly order from Grubhub through its shopping app and website, further extending a partnership that already provides its Prime members with no-fee access to Grubhub+ membership.

Under the agreement, Amazon Prime members will continue to receive a complimentary Grubhub+ membership, valued at $120 per year, which includes free delivery on orders exceeding $12.

The initial deal between Amazon and Grubhub, owned by Just Eat Takeaway.com, was established for one year in 2022 and extended for another year in 2023. The new agreement integrates Grubhub membership with Prime, making it accessible on the app and website for loyalty users annually, as long as they maintain their Prime subscription.

In the U.S., Prime membership costs $139 per year and encompasses benefits such as free delivery, gaming perks, savings on medical prescriptions at nearly 60,000 pharmacies, and access to Amazon Music, Prime Video, and Prime Reading.

Amazon secured the right to acquire a 2% stake in Grubhub in July 2022. Additionally, JustEat Takeaway disclosed that Amazon has obtained warrants representing 4% of Grubhub’s equity, with the possibility of receiving warrants for up to an additional 10% of Grubhub’s equity based on specific performance conditions.

Analyst Sean Kealy from Panmure Gordon noted that this deal enhances Grubhub’s attractiveness to potential buyers, as Just Eat Takeaway has been seeking to divest it for some time.

According to Statista, approximately 71% of all users in the U.S., totaling about 167 million, subscribed to Amazon Prime in 2023. This vast customer base underscores the significance of the partnership between Amazon and Grubhub in the food delivery landscape.